Ethics at the Forefront in Senate Democrats’ New Crypto Framework
Senate democrats launched a bold, seven-pillar framework on September 9. It aims to regulate digital assets more tightly than ever before. The move comes in direct opposition to the GOP’s Clarity Act.
At least twelve senators, including Ruben Gallego and Kirsten Gillibrand, put their names to the initiative. They cite President Trump’s investments in digital assets as a prime motivator.Claims have been made that the President is using these ventures to better his own, and his family’s, financial position—a situation described as having “no modern precedent.”
- This framework covers digital asset market structure in seven key areas.
- Moves to dismantle legal uncertainties that have endangered investors.
- Offers a clear path towards lawful operations for digital asset innovators.
Crucially, it suggests handing oversight of the spot market to the Commodity Futures Trading Commission. up until now, bodies like Bitcoin (BTC) have operated largely unchecked, says the framework. With added scrutiny, unethical practices could become a thing of the past.
Another important change involves greater disclosure requirements for issuers and platforms. Plain, precise language would clarify how an asset works—the technology behind it, where generated revenue goes, and any internal dealings. Platforms themselves would have to register with FinCEN,committing to anti-money laundering stipulations.
The framework, written by the Senators, states, “We seek clear and fair regulations to support growth working within digital asset industries.” The proposal even includes measures designed to stop any elected official from profiting from digital assets during their term of office.It seems likely that upcoming negotiations will contain heated discussions about restricting corruption risks and abuses related to digital investment.
